The Game with Alex Hormozi - The 7 Components of a Closed Deal | Ep 227

Episode Date: August 11, 2020

When one deal closes, another opens. Today, Alex (@AlexHormozi) shares with us a very simple formula called B.A.N.T and the other 3 components that will help you close deals easily. You’d be surprised at how simple but very effective these factors really are!Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(1:21) - Alex discusses B.A.N.T Formula: Budgeting, Authority, Need, and Timing.(2:26) - The 3 Ten’s: problem-solving product, trust in salesman and company.(4:53) - Applying B.A.N.T & The 3 Ten’s formula for Gym Launch.(7:04) - Applying formulas increased profits with fewer opportunities.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

There's actually four requirements from the buyer to the seller and three from the seller to the buyer. Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way. I hope you enjoy and subscribe. What's going on? Everyone, happy Friday. Hope you guys are having a good end of week with your stats with your team. Hopefully it was a good week for you.

I wanted to make this video because I had a little bit of an epiphany. recently. So, you know, I've studied a lot of marketing and sales stuff throughout my career, and there have been, you know, I've read lots of different sales, you know, philosophies and marketing stuff, and there has been this huge crystallization of understanding the components of a closed deal. And so there are requirements from the seller to the buyer and also requirements from the buyer to the seller. And so there's actually four requirements. from the buyer to the seller and three from the seller to the buyer, which is really interesting when you take this apart.

And so what is required for someone to be a prospect, all right? So there's a term called Bant, or it's an acronym called Bant, B-A-N-T. And where I first heard of this was in the software world, the SaaS world. And one of the nice things about the software world is that they're incredibly quantitative. And so they have already codified the requirements for a sale. And so typically in the software world, especially enterprise software, you transition a prospect to a closer or to an account executive once they have met all four of these requirements. If someone does not meet all four of the Bant requirements, they're not able to be passed on.

And so those requirements are as followed. B is budget, right? Do they have the budget for this thing? A, authority. Do they have the decision-making power to make the call on whether or not they or their company can do the deal? Third, do they need this solution? Do they need this issue, whatever it is? Do they have a problem that needs to be solved with this thing?

Fourth, timing. What is their timeline and are they willing to get started today? Right? And so those are the four components that a seller requires from a buyer, right? Unless a buyer has all four of those things, they cannot and will not buy. Now, on the flip side, the three requirements from a seller to a buyer are that they trust the product is going to solve their problem. They trust that the salesman is being honest. Otherwise, they will not trust what they're saying about the actual solution that they're pitching them on.

And then finally, that they trust the company. All right. And so those three, I've heard from both George Belford, Grand Cardone, those are the first places that I heard those three specific. And that's actually what we operate in our company as a sales team, is that we make sure they call them the three tens. And so you need to be a 10 out of 10 on the product. You need to be a 10 out of 10 on the salesman. This is a trustworthy guy. He really knows what he's talking about.

He's quick, he's sharp. And then you need to be a 10 out of 10 on the company. This is a trustworthy company. I feel good about doing business with them. And so if you think about any sale in general, all seven components have to be met in order for someone to say yes. And sometimes, obviously, the, you know, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the Bant requirements for somebody doing a free trial are very different than someone buying a $50,000 or a million dollar a year software, right? They're, they're, they're different. But the fundamental components remain the same. The reason this was interesting to me was that a friend of mine who's in the bizop space was recently talking about he had done a review in the last six months of sales applications.

So they had applications that had come in to purchase his product. And he had almost removed a question about timing, right, on his application. And once he did the data review, he found out that 95% of all of his sales came from people who said either they were willing to start immediately or the next. day. And only 5% of his sales came from people who said that they wanted to start at a later time, literally immediately or the next day. And so he now took the action of no longer even calling people who said that they didn't want to start immediately because he looked at his data. And this is the power of data, right? Real quick, guys, if you can think about how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram

or something like that. The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing. So if it was a review, if it was a post, if you do that, it would mean the world to me and you'll throw some good karma out there for another entrepreneur. And so we had Jim launch and you will see this in our applications now.

We're actually adding the only four questions we have. So we've actually been able to prune down our application to the only four requirements of a buyer, right? are you you know are you are you a do you need this thing right do you have the desire and the ability to do this do this implementation or do this do the solution two um do you have the authority uh to make the decision on your own for a financial thing right three do you have the budget uh that's required in order for us to be able to work with you and then four when do you want to start right and so uh immediately or you know later right and so now this has just allowed us

be so much more efficient in our process because we know that if we have all four of those, then we come into the sale with a clean slate, right? Like we only have to, we only have three components left for the salesman to cover, right? Rather than having to deal with budget or dealing with decision, you know, whether they can make the decision or whether they want to start immediately or they need to think about it, right? And so if we can cover those initially and we can set those as prerequisites and requirements of the buyer, then it massively facilitates the sales process, right? And so for me, it was just the nice aha moment of thinking, I've, I've heard of Bant, I've heard of, you need all four of those. I've thought about those within the context of a

sale, right? And on the flip side, I've thought about, you know, what is required to get someone to say yes, right? And so it was only by like recently when I realized that we had to put both of those things together, the requirements of the buyer and the requirements of the seller, that it really, it crystallized in my mind. And so hopefully you think that's as cool as I did for us simply by adding that new new style of questionnaire we've actually been able to and here's what here's what's wild about this we uh we added this this this form into our into our application you know into into working with us and it actually uh increased our cost per booking by two and a half x which is a lot right i mean it's like you'd have to have a a big increase you know in throughput in order to

account for that type of increase in in in cost right but it wasn't cost of acquisition it was cost per book call, right? And so here's where it gets fascinating. So as soon as we implemented this, we actually, even though we had a two and a half X spike in our cost per booked call, our actual sales went up. And that's what's wild. Our actual gross sales during the time period that we put this in went up. And so we made more money, even though we had two and a half X less or fewer opportunities and so that's when I just love when data comes together and actually creates a real a real outcome and so anyways I figured I would share that with you because I think it's incredibly powerful I just I just boxed Russell was like that's so cool and so I figured I would share it with

you guys because I thought that you also would find that pretty cool as well so beyond that I hope you're having an awesome Sunday if you can or sorry I don't even know what that is if you can drop a comment or like if you do dig this and if you're listening on the podcast So if you enjoyed it, made it quick. And hopefully you can use this in your business to help more folks make more decisions to help themselves by working with you. So keeping awesome. And I'll catch you guys on the flip side. Bye.